What role can a personal loan play in your home renovation?

Young Asian woman paints a room in her home

What better reason to get a personal loan than a renovation project that will make your home more valuable, more exciting, and more comfortable to live in? Personal loans are a great way to finance a home renovation, offering competitive rates and terms, as well as the flexibility of instant cash to get started when you’re ready and handle obstacles as they come. Getting your loan application just right, however, means budgeting effectively. Here’s what to keep in mind as you get started.

Reading the room

It’s common knowledge that some rooms cost more to renovate than others. Bathrooms and kitchens are famously the most expensive rooms in any house to renovate, due to their costly appliances and utilities hook-ups. Before you even sit down with a pen and paper to draw up your budget, knowing the room you plan to focus on can provide a ballpark estimate of the costs you should expect.

Setting your sights

The more specific your plans, the more precise you can be with your online loan application. When it comes to your personal loan, striking the right balance is key. You don’t want to borrow too much more than you need, as you’ll simply wind up paying interest on unspent money. However, borrowing too little can cause disruptions to your project, resulting in further expenses and possibly even necessitating a second loan. Assume you’ll spend a little more than you’ve budgeted for. After all, no project goes perfectly from start to finish.

Teaming with the right building company is wise, because their experience with past renovation products can provide valuable insight into the budgeting process. They will likely ask you any number of questions about your desired renovation outcome.

  • Will your project require that walls be removed or relocated?
  • Will your project require rewiring, rerouted plumbing, or updated HVAC systems?
  • Will your project require changes to your home’s interior structural support?
  • Will your project involve the replacement of old furniture or appliances?
  • Will your project add to the overall square meterage of your home?

Of course, if you are only painting the cupboards, you can handle your project yourself, but larger projects will require the aid of professionals. While an expense themselves, building professionals will make budgeting easier and more effective, and may even bring down the overall cost of the renovation through efficiency and insight.

Don’t forget interest

Personal loans are a great choice for financing your home renovation project. Not only are interest rates often lower than they would be with credit cards, you can use tools like online personal loan calculators to customise your repayment terms and handcraft a financing option perfectly suited to your individual needs. Knowing the rates and terms of your personal loan beforehand empowers you to include those expenses in the budget for your project. Factoring in your interest rate is crucial to effectively recovering from such a significant expense. After all, financial concerns can certainly dampen your enthusiasm for your exciting new living space. The more effectively you can pay off your personal loan, the sooner you can get excited for your next big project!

The right personal loan for the right renovation

With Nectar, you can borrow up to $15,000 using our 100% online loan application process and receive your money in as little as a day. Whatever your home renovation dreams, an online loan from Nectar is a great way to get started. Enjoy personalised rates and flexible terms. Get started today!

*Nectar’s lending criteria and responsible lending checks apply.